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Urban water pricing in Chile: cost recovery, affordability, and water conservation

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To address water scarcity issues, policymakers are increasingly considering pricing as an important tool. However, implementing tariff reforms is often difficult in practice due to political factors and the absence of governance structures that can result in quality service provision. Additionally, institutional replication of successful water pricing policies has been difficult due to incomplete information and the contextual uniqueness of local institutions, politics, and social relations. The case study reported here seeks to fill this gap by analyzing Chile's water supply and sanitation (WSS) regulatory framework and evaluating its performance. We show that Chile's policy of providing WSS services through privatized regional and local water companies has been a notable success, but faces new challenges. Thus, Chile's urban water pricing regulation represents an interesting case study for countries that are analyzing their water and sanitation regulation. WIREs Water 2017, 4:e1194. doi: 10.1002/wat2.1194 This article is categorized under: Engineering Water > Planning Water Human Water > Value of Water
Water availability(m3/s) and rainfall (mm).
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Average monthly household water consumption (m3/household/month).
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Water supply and sanitation operator's return on assets.
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Percentage of water supply and sanitation operators that fully recover operational and maintenance (%).
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Average operational revenues and operational and maintenance costs/m3 ($/m3).
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Comparison of international tariff rates (US$/m3).
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